Coffeezilla YouTube Unravels FUD Surrounding SafeMoon

The popular Youtuber has posted back-to-back videos about SafeMoon, with the latter having an excerpt of a conversation with ex-senior management from the protocol.

Edge of a Billion Dollar Scam?

SafeMoon is back in the negative limelight after notable YouTuber Coffeezilla’s latest videos about the BNB Chain-based project.

In Coffeezilla’s video released on April 19 titled, “I UNCOVERED A BILLION DOLLAR FRAUD,” the YouTuber speaks about the origins of the project and its tumultuous journey to date. Stephen Findeisen, the Youtube personality known as Coffeezilla, first started by releasing a video on April 14 about SafeMoon promoter and former Marketing Chief Ben Philips and how he had made over $12 million in return for pumping dumping the SafeMoon token. In a second video, Findisen turned his investigation deep into SafeMoon’s team and liquidity pool.

“This is a story of greed, bad financial decisions, and somehow Gambian wind farms. The creators of SafeMoon are now being sued and investigated by the FBI, but before we get to that, we have to discuss how did this all start who creates coins like SafeMoon? Was it a crypto mastermind like Soulja Boy or GaryVee? No, it turns out it was a guy who believes in Q yes that Q [Referring to QAnon],” Coffeezilla explained about the protocol’s foundations. “His name is Kyle, and very little is known about him other than he distrusts the government and thinks they’re a bunch of criminals.”

The person Findeisen is referring to is Kyle Nagy, the SafeMoon founder and dev that copied the code of the Bee Token to build SafeMoon. 

The team behind Bee Token fell prey to phishing scams during their ICO, leading to a loss of value both for investors and the team. The new allegations from Findeisen are based on the analysis of SafeMooon’s wallets and blockchain activity which––according to him––revealed that Nagy siphoned funds from the locked liquidity pool from the very beginning on 17 different occasions. 

Coffeezilla alleged that the total number of SafeMoon tokens that went to Nagy’s wallet was 164 trillion tokens, worth over $10 million in Q4 2021, around the time when Nagy exited the project. Nagy was driven out of the project due to a Twitter page, War on Rugs, highlighting the project’s practices that were hidden since the guy behind the page also scammed his community. After Nagy exited, John Karony, the current CEO of SafeMoon, was brought on to the team. 

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“Papa” & Karony Step In

Around the time Kyle Nagy stepped down from the project, Safemoon brought in developer Thomas “Papa” Smith as the project’s lead developer. 

“When Kyle stole money, he just took from the liquidity pool. But Papa was different; he had a story about it. He justified himself by saying he wasn’t rug pulling liquidity. He was moving the funds, you know, fund migration from a Version 1 liquidity pool to a Version 2,” disclosed Findeisen.

According to the investigation, Papa withdrew liquidity 18 times and held on to $143 million worth of liquidity. The sum of outgoing SafeMoon transactions was about $100 million, out of which $58.9 million went to BitMart and $8.1 million went to other undisclosed wallets. BitMart was one of the first exchanges to list the SAFEMOON token on its exchange. The investigation revealed that the project paid BitMart to list the token instead of the other way around as Safemoon had claimed.

Coffeezilla also played recordings of an ex-developer of the project, Hank Wyatt, stating that Karony refused to lock up the liquidity pool with an intent to rug more funds out of the pool. Findeisen spent significant time in his video explaining Karony’s pet project, “Project Pheonix.” The name is apparently the word phoenix misspelled, and Karony never bothered to correct it to portray the mistake as intentional.

The “Pheonix Project” began as an effort to “bank the unbanked” in Africa and then shifted to a windmill and clean energy initiative in the Gambia and then turned into the use of windmills to burn tokens. Findeisen alleged that Karony’s copied the work of a firm known as Semtive for the windmill and clean energy project.

Karony was in charge of the project and the liquidity pool when the migration to V2 began in December 2021. The V2 migration entailed that all the token holders needed to migrate their wallets to the new contract. The project imposed a 100% tax on tokens that weren’t migrated, which means holders would lose all their funds. The migration was done to create a new mechanism and rid the narrative that their code was taken from the Bee Token, a project that had rug pulled.

Coffeezilla’s investigation revealed that investors lost $102 million worth of value in the migration that was transferred to the liquidity pool controlled by Karony. At this point, the FBI had started investigating SafeMoon and its team. While interacting with BitMart, the exchange was implementing the tokenomics that implied that 5% of the trading fees would be sent to the developers to go back to the LP.

However, Coffeezilla alleges that the tokens transferred from BitMart to Karony’s wallets were never transferred to the liquidity pool. Karony has allegedly received $15 million from BitMart in stablecoins and $4 million in SAFEMOON tokens. Coffeezilla also claims that his investigation found that Kyle Nagy was paid straight out of Karony’s wallet several times, amounting to approximately $3 million.

Findeisen reached out to Karony several times about the investigation and the related allegations but did not receive a response.

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Coffeezilla Confronts Papa

In his second video, released on April 22, called ‘I CONFRONTED A BILLION DOLLAR FRAUD,’ Findeisen revealed that he confronted Papa and played excerpts from the conversation. He began questioning Papa about taking tokens from the “locked” liquidity pool (LP). They argued it was not fraud to take tokens before March 5th, 2021––before Karony joined the projects, directly implementing Nagy’s involvement. 

At this point, the LP was supposed to be locked “auto-magically” for four years.

“You can definitely ask those questions, but I don’t have the answers for you… [When offered proof]… It’s alright, you know, if it’s on the blockchain, it’s on the blockchain,” stated Papa. 

He added that he only made $2 million dollars from the project, and over $1 million of this was paid to him by Kyle Nagy. Papa denied knowing the funds were being stolen from the LP; he instead maintained the idea that they were coming from the pre-sale of the SafeMoon tokens.

“I never made any claims as to whether automatic or manually. I was showing people and telling them when I was doing it. We did it all together on Discord,” Papa stated when asked about the auto-locking mechanism for the pool. 

However, Papa added that he did suspect Karony of fraud, which was the reason behind his exit from the team.

Over the rest of the video, Papa expressed further denial of any illicit activities and added that he was just a soldier receiving marching orders from Karony. He explained that large quantities of SafeMoon remained in “excess” after the V2 migration and were sold to several exchanges by John.

“The price? I guess the value impact will come from volatility, but only on the V1-V2 PCS…The same argument can be made about the unlocked LP in John’s hands. The reason he wants it unlocked is so he can use it and doesn’t have to go through this process. (..) These other exchanges were so willing to do this deal because SafeMoon comes with a lot of volumes,” Papa justified when questioned about how the V2 migration was executed.

The video’s impact has been felt across the SafeMoon ecosystem. Most importantly, the value of the token’s price has dropped to $0.000000526, and the market capitalization dropped from the $330 million range to $306.5 million, at the time of writing, as per the data from CoinMarketCap. However, several community members have rubbished the rumors and added that it is “reheated FUD” on the project’s Discord Channel. 

This investigation is still an evolving situation that is yet to reach a closure––watch this space for more.

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Who is Coffeezilla:

Coffeziilla––whose real name is Stephen Findeisen––is a popular Youtube personality with over 1.03 million subscribers. He claims to be an “Internet Detective Exposing Scams.” The content of his Youtube videos delves deeply into exposing scamsters, fraudsters, and celebrity gurus. 

Where to find Coffeezilla: 

Youtube | Instagram | Twitter | 

Source : bsc.news